USD index In A Bullish Run – Elliott wave analysis

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Hello traders, today’s article is about USD Index and its daily time frame.
On the daily chart of USD Index we see price trading within a higher degree wave C) up from 94.68 level, as part of a bigger, A-B-C move. We know that wave C) is also an impulse, therefore a five-wave recovery can be expected to unfold within the C) wave, before a top can be seen, and a reversal from the highs may follow.
Ideally, some resistance for the USD Index and its wave C) will be seen at the 104.0/106.5 region.
USD Index, daily

On the 4h charts of US index, we see a clear impulse in the making from the 94.6 area, which also suggests where the bigger trend is going; it is going to the upside. Also, despite the strong recovery, we know that nothing moves in straight moves, so temporary pullbacks may be expected. Now price may be unfolding a fourth wave, which can look for support/bullish turn at the 101.5/100.7 zone. Once we see a new rise from the mentioned support zone in five waves of a lesser degree, that is when a fifth wave will be underway.
USD index, 4h


Trade well,
Thew EW-Forecast team.

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Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!